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Technical Analysis

Bollinger Bands

Volatility bands placed above and below a moving average.

Full Definition

Bollinger Bands consist of a middle band (typically 20-period SMA) and upper/lower bands set at a specified number of standard deviations (usually 2) from the middle. Bands expand during high volatility and contract during low volatility. Price touching the bands can indicate overbought/oversold conditions, and band squeezes often precede breakouts.

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